As parents age, securing adequate health insurance becomes crucial. However, many individuals find that health insurance for parents can be quite costly.
Fortunately, there are several ways to reduce premiums without compromising on the quality of coverage. Here is a detailed post on the strategies that can help lower the cost of health cover plans while still ensuring your parents are adequately protected.
Opt for Family Floater Plans
One of the most effective ways to lower health insurance premiums for parents is by choosing a family floater plan. This type of plan covers the entire family under one policy, making it an affordable option compared to individual plans.
A family floater plan is particularly useful when covering parents, as it can significantly reduce the overall premium. It also simplifies policy management, ensuring that all family members, including parents, are covered under a single, easy-to-manage plan.
Consider Top-Up Plans
Top-up plans offer an affordable way to increase coverage for your parents without raising the cost of premiums dramatically. These plans work by providing additional coverage once the limit of the base policy is exhausted.
Top-up plans typically have a higher deductible, meaning you will pay a portion of the medical costs upfront before the insurance policy kicks in. This makes them a cost-effective option for families seeking to provide enhanced coverage for their parents without incurring a significant premium increase.
Utilising Tax Benefits
Health insurance premiums for parents are eligible for tax deductions under Section 80d of the Income Tax Act. If your parents are under 60 years old, you can claim up to INR 25,000 in tax deductions. If they are over 60, the deduction increases to INR 50,000.
This provides an added financial benefit, effectively reducing the cost of premiums. By claiming these deductions, the overall burden of health insurance premiums for parents becomes more manageable.
Buy Policies Online
Purchasing health cover plans online offers a significant advantage in terms of cost savings. Insurance companies typically offer savings for policies purchased online, as this eliminates the need for commissions and intermediary fees.
This can make the premiums more affordable while providing the same level of coverage. Additionally, buying online allows you to compare different plans, coverage options, and premium amounts, making it easier to find the most cost-effective solution for your parents’ needs.
Review and Customise Coverage
It’s essential to regularly review your parents’ health insurance policies to ensure the coverage remains relevant to their current health needs. Sometimes, policies include unnecessary add-ons or excess coverage that can increase premiums without providing significant value.
By reviewing and customising the coverage, you can tailor the policy to meet your parents’ specific healthcare requirements, ensuring you don’t pay for unnecessary features. This can be a simple way to reduce premiums while still maintaining adequate protection.
Select Longer-Term Policies
Many insurance companies offer savings for purchasing health insurance policies with longer tenures. Opting for a two- or three-year policy instead of an annual plan can help you secure lower premiums for a longer period.
This approach is particularly useful if your parents are in good health, as it secures the premium at a lower rate and avoids annual increases. Longer-term policies can offer both financial stability and savings, making them a wise choice for families looking to reduce overall costs.
Use Network Hospitals for Cashless Treatment
Many insurance providers offer a network of hospitals where policyholders can receive cashless treatment. Choosing hospitals from this network can help reduce out-of-pocket medical expenses, as the insurer directly settles the bills with the hospital.
This feature can significantly ease the financial burden on the policyholder. By utilising this benefit, you can manage your parents’ health insurance costs more effectively, ensuring that their premiums remain affordable while also providing them with easy access to quality healthcare.
Conclusion
Reducing the premiums for health insurance for parents is achievable with the right strategies. By opting for family floater plans, considering top-up policies, and taking advantage of tax benefits, you can significantly reduce the cost of coverage.
Encouraging healthy lifestyle changes and purchasing policies online can also lower premiums while providing the necessary protection. Regularly reviewing and customising coverage, as well as selecting longer-term policies, ensures that you are only paying for what you need.
With these steps, you can effectively manage your parents’ health insurance premiums while ensuring they maintain the necessary coverage.
